Banking News

The prospect of record low savings rates continuing is forcing many savers to review how they allocate their capital in an attempt to achieve the level of returns they have previously enjoyed. Investing in the stock market inevitably involves putting your capital at risk however there is a middle ground which continues to attract increasing interest – the structured deposit. With this in mind, we take a deeper look at this savings alternative to help understand why more and more savers are starting to see their appeal. more

With the current economic environment asking savers far more questions than it gives answers, it is good to know that there are alternatives available. We take a look at one such alternative that is proving particularly popular as savers face the harsh reality that the more traditional fixed rate savings products are failing to meet their needs. more

Millions of savers are facing the harsh realisty that there is little hope of change to interest and savings rates in the coming years. However, those with Cash ISAs do have one further option to consider – the ISA transfer. We take a closer look at why this is becoming a rising trend as well as what this could mean for those looking for the potential to improve the returns from their capital. more

With so many savers joining income investors in the hunt for high yields, being able to quickly understand and compare the numerous options available has become even more important. We therefore compare two of our most popular income investments to help understand what is driving their popularity and why they might meet your income needs. more

UK recession officially over… For now

26 January 2010 / by Andy Davies

Britain has come out of the recession, as official data has revealed that the UK economy grew by 0.1 per cent in the last quarter of 2009.

The news brings an end to six consecutive quarters of contraction, which saw the economy shrink by 6.2 per cent.

The largest contributor to the positive growth came from distribution, hotels and restaurants, which grew by around 0.4 per cent.

Meanwhile, business services and finance growth was flat compared to a decrease of 0.8 per cent in the previous quarter.

However, despite the economy's latest GDP figures revealing growth for the first time since the first quarter of 2008, it is still below the 0.4 per cent figure that had been predicted by some economists.

"This is a nightmare for sterling. The run of good data for the UK economy has definitely ended and while we are glad the UK is out of recession in technical terms, this does signify that we are only just setting out on the long road to recovery.

Meanwhile, Mark Bolsom, head of the UK trading desk at Travelex, also urged caution and stressed the chances of a double dip recession 'cannot be ruled out'.

"Although a step in the right direction, investors will be disappointed given the huge amount of stimulus employed by the authorities to boost the economy.

"Investors may be cautious about over-estimating the pace of recovery, and concerned that the Bank of England has yet to close the book on Quantitative Easing," he said, before suggesting that the data is "utterly intangible to the everyday UK consumer and business".

"Unfortunately, we forecast a bumpy couple of years for UK consumers and businesses," he added.